Updated: July 13, 2020 (July 31, 2006)
Analyst ReportiPod, iTunes Competitors Coming This Year
Breaking with its digital media partners, Microsoft will manufacture a family of digital media devices and related online services under the brand name Zune. The first Zune products, a portable audio and video player and online store that will compete against Apple’s iPod and iTunes Music Store, are scheduled for the 2006 holiday season. The move comes as Apple’s continuing dominance threatens the Windows Media platform and indicates Microsoft’s newfound willingness to build hardware rather than cede a strategic market.
Battling Apple
The iPod’s style and ease-of-use have made it one of the most popular consumer products of the decade and it consistently hovers around 75% market share for digital music players. The popularity of the iTunes Music Store, with over 1 billion songs sold and approximately 70% of the market for legal music downloads, further strengthens Apple’s dominance because content purchased from it cannot be played on any other device.
Microsoft has taken numerous steps to counter Apple with the Windows Media platform:
Atlas Members have full access
Get access to this and thousands of other unbiased analyses, roadmaps, decision kits, infographics, reference guides, and more, all included with membership. Comprehensive access to the most in-depth and unbiased expertise for Microsoft enterprise decision-making is waiting.
Membership OptionsAlready have an account? Login Now